ERP Systems in the Cloud: Advantages and Limitations

ERP Systems in the Cloud
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Table of Contents
Introduction......................................................................................................................................3
Cloud computing.............................................................................................................................3
Models of Cloud Computing...........................................................................................................5
Cloud computing services............................................................................................................6
ERP Systems....................................................................................................................................6
Cloud-based ERP.............................................................................................................................7
Scope of ERP Systems in the Cloud................................................................................................8
Advantages of using ERP Systems in the Cloud.............................................................................8
Cost..............................................................................................................................................8
Rapid deployment........................................................................................................................9
Flexibility and scalability.............................................................................................................9
Limitations of the Cloud..................................................................................................................9
Perceived data risk.......................................................................................................................9
Organizational resistance...........................................................................................................10
Evaluation Framework...............................................................................................................10
Case study......................................................................................................................................10
Example of a commercial Cloud ERP system...............................................................................11
SAP ERP....................................................................................................................................11
Choosing a cloud ERP Vendor......................................................................................................12
References......................................................................................................................................14

Introduction
Global business is changing fast as far as enterprise systems, and unique parts require specific
arrangements. These endeavors are overshadowed by the fact that most economies are leaving
retreat and the companies are catching up on the development bend. Industrial arrangements are
sophisticated and regularly require colossal amounts of cash and exertion. There is proceeded
with the need to enhance the effectiveness of operations. The Enterprise Resource Planning
(ERP) platforms are creating to give answers for the rising needs of the global creativity. In the
last couple of years, the utilization of ERP has changed drastically (Chen, Liang, & Hsu, 2015).
At present, ERP can be applied to any company operating in any field. That is the reason cloud-
based ERP is rising as an answer to these issues. The organization of cloud computing is easy,
and its control is subject to the merchant's help. In this manner, it is easy to execute an ERP in an
organization because it depends on the web.
When many people hear the word “cloud”, I believe they think of a technology that’s new and
one that hasn’t been around for very long. However, cloud computing can mean many different
things and it’s a technology that’s really been around for a long time.
Cloud ERP helps the company to get the flavor in one sip. Leading club is a financial institution
that is providing the services in the areas of lending and borrowing, and their customer
bandwidth is very high. They are providing their services since 2007. To manage their complex
operations, they are using the cloud ERP system. It helps the company to reduce its cost and
make the decisions with more precisions (Ali, Moawad, & Hosni, 2016). It makes the workflow
of the company smoother and enhances the communication between the departments. It also
helps the company to integrate its system with other systems. It also helps to secure the sensitive
data of the company. It also transforms the customer’s experience of the company by providing
higher value to the teams and customers.
Cloud computing
Many people don’t realize this, but something as simple as email is considered to be cloud
computing. This is because many of us use Gmail, Yahoo or Hotmail as our email provider of
choice. All three of these providers, and many more, keep our emails on their servers. This

means that whenever we access our email via a web browser, we’re actually accessing and
viewing our email that’s kept in the cloud.
Aside from cloud based email, there are many other forms of cloud computing. Apple’s iCloud is
a well renowned form of cloud computing that many people first think of when they see the or
think of the term “cloud.” iCloud is a service that Apple offers to any customer that owns an
Apple product. It is a simple and secure way of keeping all of your information such as contacts,
photos, documents, apps, and much more on Apple’s servers. By using and backing up all
information to iCloud, if you were to upgrade to the latest generation of the iPhone, all that’s
required to retain information on your old iPhone is to sign in to iCloud and you now have all of
your content just as you left it on your old phone.
Microsoft also has their own approach to cloud computing. They call it “SkyDrive.” Although
SkyDrive is similar to iCloud in some ways, Microsoft has a bit different use for their cloud
servers. If you’ve ever heard of Drop Box, SkyDrive is very similar. SkyDrive integrates with
Microsoft’s Office so you can keep all of your documents in one place that you can access from
any computer. This also acts as a very useful way to backup important documents to you
wouldn’t ever want to lose.
Cloud computing is a technology that has a very bright future. I believe that one day we will be
keeping all of our information in the cloud. Instead of keeping information on a hard drive that
can only be accessed on that specific computer, we will be keeping everything in the cloud
where we can access all information at anytime and anywhere.
Cloud computing is a technology that entails several interconnected computers to deliver
computing services via a communication network such as the internet. Today, many companies
provide these services such as Google, Apple, Amazon, and Microsoft Azure among others
(Kiadehi & Mohammadi, 2012). These companies pose as cloud services vendors. Cloud
computing cannot be deemed a new concept in the realm of information technology. Instead, it is
a more excellent alternative for data processing administration authorities that existed years ago.
Cloud computing comes with the choice of specification and can help all sizes of businesses. It is
also deemed an economical alternative for business data processing (Ray, 2016).
Cloud computing offers numerous advantages, which makes it a preference for many businesses.
Besides, it provides flexibility, improved reliability, collaboration, security, unlimited file access